Amidst the current bearish market conditions, TrueUSD (TUSD) has experienced a deviation from its $1 peg, widening to $0.9778 in the past 24 hours. This dip correlates with significant sell-offs in major cryptocurrencies like Bitcoin and Ethereum.

Earlier this month, increased volatility in TUSD’s value was noted as holders opted for alternative stablecoins like Tether’s USDT.

In response to concerns, the project team attributed the price fluctuations to community mining activities linked to Binance Launchpool. They reassured the community about the functionality of redemption channels and daily routine attestations. However, despite these clarifications, community apprehensions persist, particularly evident in the TUSD Curve pool, where the stablecoin accounts for almost 90% of the $70,000 reserve.

TUSD’s challenges over the past year, including ownership controversies and connections to Justin Sun, along with concerns about exposure to the bankrupt crypto custodial firm Prime Trust, have impacted its supply. The stablecoin’s supply has seen a decline of over 43% in the last two months, now standing at $1.9 billion, according to CryptoSlate.

Amidst these challenges, First Digital USD (FDUSD) has emerged as a notable winner. Binance’s preference for FDUSD has led to a substantial market capitalization surge, reaching $2.65 billion, making it the fourth-largest stablecoin by market cap. This rise can be attributed to setbacks experienced by other stablecoins favored by Binance, such as Binance USD (BUSD) and TUSD.